The grey market premium (GMP) for NTPC Green Energy’s IPO has dipped as anticipation builds around the company filing its red herring prospectus (RHP). The recent GMP decline is attributed to broader market pressures, including continued foreign institutional investor (FII) outflows, subdued quarterly results, and weak trends across Asian markets, all of which have affected liquidity and enthusiasm for upcoming IPOs.
Most notably, the IPO of Hyundai Motor India Limited flopped on its listing with a 1.32 percent discount on October 22, while Afcons Infra shares started trading with an 8 percent discount on November 4. These two latest IPO debuts indicate the tough primary market conditions that seem to be affecting NTPC Green’s GMP. It is presently around 9 percent, says Investorgain and IPO Watch, and has come down from 25 percent last week.
NTPC Green Energy is incorporated as a fully-owned subsidiary, only to undertake renewable power, and the recent filing of its DRHP with the SEBI in September has evinced strong interest. The IPO of around Rs 10,000 crore will be an important milestone in the broader renewable play of NTPC, given its ambitious target to attain 60 GW by FY32. It currently has 24 GW in its pipeline and plans to expand further into solar power and green hydrogen.
The public issue is being offered as appropriated for the shareholders of NTPC at 10% as recorded upon the date of filing the RHP. This would be a pure equity issue and shall not include an offer-for-sale component. This reiterates the aggressive growth plans of NTPC Green Energy in renewable energy.
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Source: Moneycontrol
News Desk
